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2.3 How the government manages the economy

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Question 1

The economy is in a recession. The government increases spending on transport projects without raising taxes. Which combination is most likely in the short run?

[1]
A

Aggregate spending falls and the budget deficit narrows

B

Aggregate spending falls and the budget deficit widens

C

Aggregate spending rises and the budget deficit narrows

D

Aggregate spending rises and the budget deficit widens

Markscheme

2.3 How the government manages the economy Questions

  1. GCSE
  2. /Economics
  3. /2.3 How the government manages the economy

104 exam-style questions on AQA GCSE Economics 2.3 How the government manages the economy, covering 2.3.1a Fiscal policy and income and expenditure, 2.3.1b Fiscal policy and government objectives, 2.3.1c The government budget, 2.3.2a The meaning of monetary policy, 2.3.2b Uses of monetary policy, 2.3.3a Supply-side policies and their trade-offs, 2.3.3b Using supply-side policies, and 2.3.4 Policies to correct positive and negative externalities. Each one has a worked solution and a mark scheme showing where the marks go.

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